USAirways/America West Merger Talks -WSJ

[RowUnderDCA]

Ummm....Can we say, "Told you so."

[post="263273"][/post]​

Yes, you did and I listened.

 

[TBONEJ4J]

I agree. I personally would like to see the companies create a Midwest hub/focus city and maybe STL or DEN could be an option, with a focus on EMB-170s & EMB-190s for low cost operations. That would fill in the combined business entities domestic route network.

[post="263307"][/post]​

Who will be operating the 170s and 190s though?

Will this deal afford Mesa the opportunity to acquire those aircraft rather than Republic?

 

[funguy2]

As for "adding transcons to connect the route networks," this has been tried already: PSA. It failed. (why, given equal fares, do I go JAX-CLT-PHX-SMF when I can go JAX-DFW-SMF?)

I think the idea is that given US's market presence and existing operations at JAX, a merged US/HP could add JAX-PHX so they could compete in the JAX-SMF market. Or perhaps they could add CLT-SMF. Or maybe both. Without US, HP would probably never fly to JAX. There are probably hundreds of examples of this - from both ends.

I've said it before, and I'll say it again. America West is not PSA. HP has a significant nationwide network, and is one of the larger players in the transcon market. Its connecting business was successful on the transcon market, so they tried it nonstop (Which apparently did not work).

IIRC, PSA's eastern most destination was ABQ. HP's is BOS.

Also, the combined entity would be much stronger in the middle of the country. For example, the combined airline would have service from DFW to PHL, DCA, CLT, PIT, PHX, and LAS - effectively offering one-stop service nationwide. This would also be true for ORD, MCI, DTW, MSP, DEN, MKE, IND, MSY, MEM, etc, etc, etc.

Lastly, I could see the combined airline working to add both east and west service from points in the middle that currently don't have it. For example, HP flies ICT and DSM to PHX. Maybe the combined airline adds ICT/DSM-CLT RJ's. US currently flies to XNA and BNA to CLT. Maybe the combined airline adds XNA and BNA to PHX.

If they can do all this, and keep the costs down, and the fares down, the combined entity could be AirTran and jetBlue to the punch of being a nationwide rival to Southwest... And if successful, the stockholders could be nicely rewarded. I now see why HP is interested.

 

[hp_fa]

The US-HP deal will proceed, GE, RSA, and another party will provide the financing, US Airways' paint scheme, word mark, and headquarters would survive, and the new CEO will be Doug Parker.

USA320Pilot

[post="263307"][/post]​

Gee, have you ever thought about those nice dark planes sitting in the noon sun in PHX and LAS?

 

[funguy2]

USA320Pilot comments: As I said in the past, US Airways was involved in UCT and ICT talks with United for the past couple of years and also had talks with Northwest. Did that result in a deal? No, but we were very close to having one announced.

Let's see here... And let's try to focus on facts.

HP: Announced a profit today
US: In its second BK in two years

Who do you think holds the upper hand? Not US. HP can walk away, and probably be ok. Afterall, they are reporting a profit, and even have had a profitable year since 9/11/01. US, on the other hand, has been BK twice and needs a savior.

US is not in the driver's seat.

 

[dfw79]

New paint scheme...I always liked this one that I ran into at http://www.cardatabase.net/modifiedairlinerphotos/. I would still keep the same tail as the current scheme...but the design change on the rest works.

 

[usair_begins_with_u]

LIVERY!!!!

 

[funguy2]

What I find interesting is that US Airways has apparently backed away from United. Why is that?

And what I find interesting is that up until about 2 weeks ago, you were quoting Glenn Tilton's comments regarding industry consolidation and implying (but never out-right saying) a UA-US "UCT".

Why is that, I wonder?

 

[JAMAKE1]

USA320PILOT:

I respectfully disagree with you on two of your earlier comments. It would be improbable that a US/AWA combination would move into places such as DEN and STL. Airlines are probably unwilling to go up against incumbent carriers in this environment. DEN would be out of the picture due to the dual strenghth of UA and F8? (Frontier). Same in STL with AA and to a lesser extent, SWA. The trend has been to downsize in markets where a carrier cannot achieve market dominance (DL in DFW, UA in MIA).

IMHO, I do not foresee United giving its blessing to a US/AWA marriage by allowing continued participation in Star Alliance. As I mentioned in an earlier post, it would not surprise me to see a reallignment of alliance partners with regard to both Star and Sky Team.

There you have my armchair CEO's two cents, for what it's worth.

 

[skyflyr69]

AWSOME SCHEME!

 

[USA320Pilot]

Funguy2 said:

Let's see here... And let's try to focus on facts.

HP: Announced a profit today
US: In its second BK in two years

Who do you think holds the upper hand? Not US. HP can walk away, and probably be ok. Afterall, they are reporting a profit, and even have had a profitable year since 9/11/01. US, on the other hand, has been BK twice and needs a savior. US is not in the driver's seat.

USA320Pilot comments: I agree and it's my understanding GE is in control of the situation.

Regards,

USA320Pilot

 

[Rico]

1. Are you kidding people, the goverment is one of the major forces driving this... This is EXACTLY what the ATSB wants to see happen, and will cause a cascading effect through the industry...

Ther e is nothing anti-competitive about it. It is a combination of market strengths, not an overlap causing a monoplistic condition anywhere. It wouldnot make it larger than the largest carriers around, nor would it drive pices up, rather create a nother strong LCC with a hybrid of Hob/spke operations

Rememeber too, that this is make or break time in this industry, so much like the near zero govermental opposition to the AAL/TWA merger... This will go by without any governmental fuss becuase they WANT stronger carriers

2. That Pic of the paint job is great, that is so much be5tter than what MR. Wolf picked for us. granted, I know it is only a made up livery, but that can go to show you the promise of where this all could lead.

 

[USA320Pilot]

Quote: "US Airways executives 'are more than happy to go back to playing golf as opposed to running an airline that is extremely difficult,' Bronner said, calling America West managers 'extremely capable people ... that are well-respected in the industry.'â€￾

USA320Pilot comments: I believe Bronner's comment above referred to Bruce Lakefield. Lakefield has said he was brought in to help RSA protect its investment and in particular to obtain new labor agreements without the need of a formal reorganization. US Airways' restructuring has been grueling and a combined US Airways - America West could be better served by a younger, energetic chief executive. Doug Parker has done a good job with America West as indicated by today's financial results and he would be an excellent CEO for the potential combined business enterprise, if Bruce Ashby is not selected.

Regards,

USA320Pilot

 

[longing4piedmont]

2. That Pic of the paint job is great, that is so much be5tter than what MR. Wolf picked for us. granted, I know it is only a made up livery, but that can go to show you the promise of where this all could lead.

[post="263335"][/post]​

Reminds me WAY TOO MUCH of Song.

 

[funguy2]

USA320Pilot comments: I agree and it's my understanding GE is in control of the situation.

And how does GE control HP?

Clearly, GE, as US's largest creditor, is in control of the US side.

However, GE does not have any control over HP. TPG does.